1. At a Glance – The “What Just Happened?” Moment
₹270 crore market cap. Stock price around ₹14.2. Book value ₹18.1. Price-to-book sitting at a lazy 0.79x like it doesn’t care. And then—BAM—Q3 FY26 drops a ₹16.8 crore PAT, up 703% YoY, on quarterly revenue of ₹42.2 crore (+183% YoY).
This is not your polite, slow-moving NBFC uncle. This is the guy who shows up late to the wedding and steals the spotlight with one wild dance move.
But before we declare a “hidden gem,” let’s slow down. U. Y. Fincorp has a long, quirky history of lumpy income, trading-heavy revenue, and occasional profit spikes that appear like surprise plot twists.
Debt? Practically non-existent at ₹3.95 crore.
Promoter holding? A comfortable 71.38%, unchanged.
ROE? Still a sleepy 3.62%.
ROCE? Meh at 5.46%.
So yes, profits exploded. But is this a business transformation or a one-quarter trading jackpot? That’s the real question. Ready to dig? 👀
2. Introduction – A Stock That Loves Surprises
U. Y. Fincorp is one of those companies that refuses to fit neatly into Excel models. On paper, it’s a RBI-registered Non-Systematically Important, Non-Deposit Taking NBFC. In reality, it behaves like a hybrid creature—part lender, part investor, part trader, part opportunist.
Some years, lending dominates.
Some years, investments do the heavy lifting.
Some quarters? Sale of shares & securities quietly pays the bills.
FY23 revenue mix told the truth bluntly:
- 70% from sale of shares & securities
- 28% from interest income
- 2% from other income
That’s not a classic NBFC annuity model. That’s closer to a finance chameleon—changing colours based on market mood.
And yet, the market has mostly ignored it. The stock is down 43% over 1 year, barely moved over 3 years, while profits (on a TTM basis) jumped 108%.
So why the disconnect? Because markets hate unpredictability more than low growth. And UYFL has been unpredictable… until
Q3 FY26 decided to shout.
Is this the beginning of consistency—or just another plot twist? Let’s keep going.
3. Business Model – WTF Do They Even Do?
Explaining U. Y. Fincorp to a lazy investor goes like this:
“They lend money… but also trade stocks… and sometimes make more money selling shares than lending loans.”
Fund-Based Services
- Inter-corporate loans
- Loan against property
- Loan against shares
- Real estate & infrastructure funding
- Bridge finance & bill discounting
Fee-Based Services
- Loan syndication
- Project counselling
The New Kid: GrowU
Management has rolled out GrowU, a newer brand targeting small-ticket, high-yield loans:
- Monthly run-rate: ~₹100 lakh
- Interest rates: 24–30% p.a.
- Digital disbursement model
- Expanding across Uttar Pradesh (Lucknow, Kanpur → Prayagraj, Varanasi, Ayodhya, Gorakhpur, etc.)
This is the most important strategic shift in years. Why? Because:
- Trading income is volatile
- High-yield retail loans = recurring cash flow (if NPAs behave 👀)
They’ve also tied up with Business Correspondents (BCs) like Virat India MFI and others to expand reach without heavy branch costs.
Question for you:
👉 If GrowU scales cleanly, does UYFL finally become a “real NBFC” instead of a finance hobbyist?
4. Financials Overview – The Numbers Don’t Whisper, They Shout
Quarterly Comparison (Standalone, ₹ crore)
| Metric | Latest Qtr (Q3 FY26) | YoY Qtr (Q3 FY25) | Prev Qtr (Q2 FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 42.2 | 15.2 | 27.0 | +183% | +56% |
| Financing Profit | 22.0 | 2.7 | 11.0 | +703% | +100% |
| PAT | 16.8 | 2.1 | 8.0 | +703% | +110% |
| EPS (₹) | 0.88 | 0.11 | 0.43 | +703% | +105% |
